First Solar (FSLR) Shares are Soaring Today. Here's Why

May 13, 2022 9:31 AM EDT
Get Alerts FSLR Hot Sheet
Price: $65.77 -1.05%

Rating Summary:
    12 Buy, 25 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
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Shares of First Solar (NASDAQ: FSLR) are trading 5% higher today after Piper Sandler analyst Kashy Harrison upgraded the stock from Neutral to Overweight with a $90.00 per share price target (up from $80.00).

The analyst sees that the recent bookings momentum, driven by AD/CVD investigation, provides strong volume/pricing visibility through 2024.

“We view '22 as a trough margin year and see the potential for improving COGS as logistics normalize, new contracting structures de-risking margins manifest in '23/'24, and startup expenses associated with facility construction subside,” Harrison said in a client note.

The analyst forecasts that revenues and EBITDA could go from $2.4/$0.1B in '22 to $4.3/$1.2B by '24.

“Our upgrade is not a call on a tariff outcome as FSLR could have pricing/volume visibility through much of '25 by the time a preliminary tariff is announced in August. Finally, FSLR possesses option value if an energy bill is passed (lower probability... excluded from valuation). At 4.5x '24 EV/EBITDA with $1.1B of net cash expected at YE'22, we like FSLR's lower risk multi-year earnings growth outlook,” Harrison added.

FSLR shares are down over 30% YTD.

By Senad Karaahmetovic

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